Chapter 4--Vocab

Question 1

advertising substantiation program

Answer 1

An ftc program initiated in 1971 to ensure that advertisers make available to consumers supporting evidence for claims made in ads.

Question 2

affirmative disclosure

Answer 2

An ftc action requiring that important material determined to be absent from prior ads must be included in subsequent advertisements.

Question 3

appropriation

Answer 3

The use of pictures or images owned by someone else without permission.

Question 4

behavioral targeting

Answer 4

The process of database development made possible by online tracking markers that advertisers place on a Web surfer’s hard drive to track that person’s online surfing and shopping behavior.

Question 5

cease-and-desist order

Answer 5

An FTC action requiring an advertiser to stop running an ad within 30 days so a hearing can be held to determine whether the advertising in question is deceptive or unfair.

Question 6

celebrity endorsements

Answer 6

Advertisements that use an expert or celebrity as a spokesperson to endorse the use of a product or service.

Question 7

comparison advertisements

Answer 7

Advertisements in which an advertiser makes a comparison between the firm’s brand and competitors’ brands.

Question 8

consent order

Answer 8

An FTC action asking an advertiser accused of running deceptive or unfair advertising to stop running the advertisement in question, without admitting guilt.

Question 9

consumerism

Answer 9

The actions of individual consumers to exert power over the marketplace activities of organizations.

Question 10

corrective advertising

Answer 10

An ftc action requiring an advertiser to run additional advertisements to dispel false beliefs created by deceptive advertising.

Question 11

deception

Answer 11

Making false or misleading statements in an advertisement.

Question 12

defamation

Answer 12

When a communication occurs that damages the reputation of an individual because the information was untrue.

Question 13

ethics

Answer 13

Moral standards and principles against which behavior is judged.

Question 14

libel

Answer 14

Defamation that occurs in print and would relate to magazine, newspaper, direct mail, or Internet reports.

Question 15

monopoly power

Answer 15

The ability of a firm to make it impossible for rival firms to compete with it, either through advertising or in some other way.

Question 16

phishing

Answer 16

A form of email spam with which spammers try to entice web users to enter personal information on fake websites that are forged to look like authentic sites such as a bank, the IRS or other organization that will get the email users attention.

Question 17

premiums

Answer 17

Items that feature the logo of a sponsor and that are offered free, or at a reduced price, with the purchase of another item.

Question 18

primary demand

Answer 18

The demand for an entire product category.

Question 19

puffery

Answer 19

The use of absolute superlatives like “Number One” and “Best in the World” in advertisements.

Question 20

self-regulation

Answer 20

The advertising industry’s attempt to police itself.

Question 21

slander

Answer 21

Oral defamation that in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees.

Question 22

spam

Answer 22

To post messages to many unrelated newsgroups on Usenet.

Question 23

unfair advertising

Answer 23

Defined by Congress as “acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by the countervailing benefits to consumers or competition.”

Question 24

vertical cooperative advertising

Answer 24

An advertising technique whereby a manufacturer and dealer (either a wholesaler or retailer) share the expense of advertising.